Short Sales-what can you expect when buying a short sale in N W Indiana?
Many clients see the ripe dangling fruit of short sales and their eyes sparkle. I'd like to put out a word of caution before you fall victim to your own imagination. A short sale occurs when a home owner is in financial distress and he is asking his lender to accept less than he owes on the home as satisfaction for the debt. Many buyers look at these homes in the MLS and see a cheap way to buy more house than they would normally be able to afford. Sometimes this works out but if you approach the short sale with a more realistic view you are liable to get the good deal you are seeking.
The price you see in the MLS already reflects a discounted sale price. The seller is trying to get out from under his debt and so is not going to ask top dollar-expecting to walk away with a tidy sum to buy a boat. He just wants to move on with his life with as little financial damage as possible. The buyers who think they can come in and low ball a seller are not seeing the entire picture. If the seller's agent has done her homework and gotten the required docs to the lender and they have agreed on a price then that is the price! There are still fees to be paid-expenses of the sale, title insurance, tax escrows, agent fees, etc. The banks bottom line plus the sale fees and you have a good solid deal. The buyer has to realize that the bank nor the home owner are planning to give away the home.
A short sale can be a really good deal for a buyer but that buyer must be realistic and think in terms of helping out the seller-not raping him. My advice is to approach the short sale as a rescue. Most short sales that I've seen are already a bargain before they are listed. If you find a home that you love and it happens to be a bargain-go with it-make an offer the bank can live with and get on with your life. Saving a few dollars on a short sale is not what we need in this country right now. Recovery is going to come but not if each and every one of us is looking out only for #1.